MSC DEPLOYS FIRST 24,000 TEU BOXSHIPS TO WEST AFRICA
MSC Mediterranean Shipping Company has become the first shipping company to deploy its mega ships to the African continent. The company made history in late April and early May when the service was inaugurated with two of the recently built 24,000 TEU class containerships arriving in the ports of Ghana, Togo, Cote d’Ivoire, and Cameroon as part of the deployment on the African Express service. Since the introduction of the latest segment of ultra large container vessels, carriers ranging from MSC, CMA CGM, and Hapag-Lloyd to Evergreen and OOCL have used the massive vessels for Asia to Europe routes. The ships were designed to maximize capacity around 24,000 TEU per vessel and with the maximum dimensions for a transit of the Suez Canal and the ports of Northern Europe. Port officials highlighted the development of their facilities and the technical challenges of handling vessels more than 100 feet longer than previous ships. The Lomé Container Terminal is the largest container port in West Africa and sub-Saharan Africa. It is also the fifth largest in Africa having handled approximately 1.7 million TEU last year. Both MSC and CMA CGM also made large investments in acquiring terminals and logistics operations in Africa in recent years.
CANADA, CHINA PRAISE COURT RULING STRIKING DOWN TRUMP’S TARIFFS
Global leaders and some trade stakeholders are reacting positively to a U.S. federal court ruling blocking many of the recent tariffs imposed by President Donald Trump. The Court of International Trade (CIT) ruled on Wednesday that the Trump administration overstepped its authority by using a 1977 federal economic emergency law to justify the tariffs. According to the court, the law does not specify tariffs as a tool available to the president to protect the U.S. from economic threats. The ruling covers a wide range of fentanyl- and immigration-related tariffs, including 25% levies on goods from Canada and Mexico and 30% on China, as well as 10% reciprocal tariffs that had impacted nearly every major U.S. trading partner. The plaintiffs argued that the Trump administration exceeded its International Emergency Economic Powers Act authority, asserting that only Congress has exclusive power to regulate commerce and impose duties. The administration immediately appealed to the U.S. Court of Appeals for the Federal Circuit, with some experts predicting a Supreme Court review due to the case’s implications for presidential power. Tariffs still intact are the 25% duties on automotive, steel and aluminum imports. Carney said those tariffs still pose a significant disruption to trade between the U.S. and Canada.
APPEALS COURT HALTS TRADE COURT’S TARIFF INJUNCTION: WHAT IT MEANS FOR FREIGHT
For freight forwarders, truckers and logistics providers, the ruling is a short-term win. The tariffs, which spiked costs for imported goods like Canadian potash, Mexican auto parts and Chinese electronics, strained cash flow for businesses like V.O.S. Selections, which reported reduced inventory and canceled orders. Genova Pipe, another plaintiff, faced higher raw material costs, while MicroKits warned it might shutter without relief. CIT’s permanent injunction, effective immediately, halts these duties, easing pressure on supply chains already battered by a protracted freight recession. But don’t pop the champagne yet. The ruling invites an appeal to the Federal Circuit and eventually the Supreme Court, where the administration could argue for broader IEEPA powers. Trump’s trade team, led by U.S. Trade Representative Jamieson Greer, may also pivot to narrower tariff schemes under Section 301 or Section 232, which allow duties for unfair trade practices or national security threats but require rigorous investigations. Retaliatory tariffs from trading partners, like China’s response to the Retaliatory Tariffs, could linger, complicating cross-border freight.
APRIL CONTAINER VOLUMES SURGE AT PORT OF NEW YORK-NEW JERSEY
The busiest container port on the U.S. East Coast saw surging container volume in April. The Port of New York and New Jersey handled 751,194 twenty-foot equivalent units in April as shippers continued to frontload imports ahead of tariffs on Chinese goods. The total was an increase of 24% from April 2019 prior to the pandemic and a 6% gain from April 2024, according to the Port Authority of New York and New Jersey. Over the first four months of the year, the port handled 2,954,913 TEUs. This marked a 23% jump from the same period of 2019 and an increase of 9% from the first four months of 2024. container rates tracked by SONAR paralleled the April gains as container rates from Yantian, China, to New York-New Jersey staged a “V shape-plus” recovery after U.S. Treasury Secretary Scott Bessent on April 27 said “there is a path” to a tariff agreement with China. Rates increased from $3,826 on April 28 to $4,348 on May 1.